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Yearly Lease or Month to Month Comparison

YEARLY Vs MONTH to MONTH COMPARISONS

What is the difference in Yearly Leases, as compared to month-to-month?

In the rental industry we have two train of thoughts and a rider, please bear with me on this….J

    1. Traditional one year lease.

      *This is how we write most all of our leases. One year. We have done two and three-year leases at times and even 5 year leases with our Rent to Own program.

 

    1. Month to month lease.

      *This is actually a strategy being used by more landlords now. Basically, it allows the landlord to evict the tenant much faster if needed, with the thought that if the tenant is happy….they will not move out early anyway. I have two owners right now who prefer month-to-month rents. One is a 36 unit complex in Lakewood.

 

  1. Rider =A one year lease that was allowed to lapse into a month to month.

    *This “rider” type of lease is perhaps used by more landlords than most people realize.A. We sign a one year lease to ensure longevity, but when renewal time comes we may not want to put a burden on the tenant to re-sign a lease unless we are raising the rent…., and if all terms remain the same.

    B. We also do this if we are unsure what the owner wants to do.

    C. In 2012 we sold 52 homes with our son Don of Leske Realty. Month-to-Month rentals were much easier to sell than those with long leases remaining.

    Some of our owners wish to sell.., and when that happens we cannot force a tenant out early unless they are on a month-to-month. Tenants do not realize this in most cases…, but we can offer them another rental without another screening, plus a free U-Haul Truck as an incentive to stay put and pay rent…..right till the day of closing a sale.

    Owners seem to love that. So, a bit of strategy is involved in the process.J

    In the end, we are glad to do whatever you ask.